that close to sums it up. it's not the core that fries but yes there are diodes there to protect the IMC (Integrated Memory Controller) from voltage spikes. if there is a potential difference of greater than 0.325v between the cpu vcore and 1/2 vdimm (also known as VTT) then the diodes will break down, subsequently your memory controller will be thoroughly FUBAR. the value is based on the presumption that the maximum potential difference that can be assumed safe is that of 1.1v vcore (cool n' quiet enabled) to the maximum standard VTT value of 1.425v (using 2.85v as the standard max vdimm value). so when overclocking, especially with voltage loving memory this has to be kept in mind, as well as with cool n' quiet.
AMD actually issued a "read between the lines" statement saying to overvolt their cpus
. the issue can be presumed to exist with all K8 processors.